{"id":128713,"date":"2020-03-24T07:00:43","date_gmt":"2020-03-24T07:00:43","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=128713"},"modified":"2020-03-24T05:36:43","modified_gmt":"2020-03-24T05:36:43","slug":"economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/","title":{"rendered":"Economic downturn erases trillions from stock market and shows just how tiny crypto truly is"},"content":{"rendered":"<p>It\u2019s no secret that 2020 has been a rough year for the world, kicking off with raging fires in Australia and heightened political tensions within the Middle East, followed by the rise of a deadly virus that has put the world economy on the brink of a recession, also causing <a href=\"https:\/\/cryptoslate.com\/the-crypto-market-is-hanging-on-by-a-thread-according-to-this-chart-but-all-hope-isnt-lost\/\">nascent markets like crypto to the tank<\/a>.<\/p>\n<p>This economic downturn has been unprecedented, with the U.S. stock market\u2019s benchmark indices all seeing declines emblematic of those incurred during major recessions.<\/p>\n<p>The magnitude of the value that major corporations have lost as a result of the ongoing economic decline has been staggering, and it also elucidates just how tiny the crypto markets truly are.<\/p>\n<h2>Coronavirus destroys the global economy, creates far-reaching shockwaves<\/h2>\n<p>The Dow Jones, which is looked upon as the benchmark index to gauge the health of the global economy, has declined by over 30 percent during the past one-month period, plummeting from highs of nearly 30,000 in late-February to lows set today at just above 18,000.<\/p>\n<p>This massive decline has come as the lethal Coronavirus spreads at a rapid rate on a global level, leading <a href=\"https:\/\/cryptoslate.com\/new-york-governor-warns-lockdowns-could-last-through-2020-how-will-bitcoin-fare\/\">massive cities across the globe to go on lockdown<\/a>, sending unemployment skyrocketing while retail-driven businesses shutter.<\/p>\n<figure id=\"attachment_128615\" aria-describedby=\"caption-attachment-128615\" style=\"width: 480px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/new-york-governor-warns-lockdowns-could-last-through-2020-how-will-bitcoin-fare\/\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-128615\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-lockdown-1024x538.jpg\" alt=\"New York Governor warns lockdowns could last through 2020; how will Bitcoin fare?\" width=\"480\" height=\"252\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-lockdown-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-lockdown-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-lockdown-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-lockdown.jpg 1200w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/><\/a><figcaption id=\"caption-attachment-128615\" class=\"wp-caption-text\">Related: <a href=\"https:\/\/cryptoslate.com\/new-york-governor-warns-lockdowns-could-last-through-2020-how-will-bitcoin-fare\/\">New York Governor warns lockdowns could last through 2020; how will Bitcoin fare?<\/a><\/figcaption><\/figure>\n<p>The impacts of the virus-induced economic downturn have been far-reaching, also leading small markets \u2014 like crypto \u2014 that is fully detached from the traditional ones to see massive declines.<\/p>\n<p>Bitcoin \u2014 the benchmark cryptocurrency \u2014 <a href=\"https:\/\/cryptoslate.com\/bitcoin-sees-sharp-decline-as-stock-market-futures-plummet-5-is-all-hope-lost\/\">plummeted from its 2020 highs<\/a> of $10,500 to lows of roughly $3,600, which is where it was able to garner some support that has led it to climb back into the $6,000 region.<\/p>\n<h2>Recent stock market selloff shines a light on just how tiny crypto truly is<\/h2>\n<p>It is important to note that the recent stock market selloff has led some major companies to see market cap losses as high as $100 billion or more.<\/p>\n<p>Micha\u00ebl van de Poppe \u2014 a popular analyst \u2014 <a href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1242188983276384258\">explained<\/a> that Apple\u2019s market cap has already declined by over $400 billion from its year-to-date highs, which is over double the size of the entire crypto market\u2019s capitalization.<\/p>\n<blockquote><p>\u201cThe Dow Jones Index is down 38% in one month. Just one month. Apple lost 34% and about 400-500$ Billion in value. In just one month. Crypto market capitalization; $180 billion. We're just still so tiny and early. But digital cash & crypto are the future.\u201d<\/p><\/blockquote>\n<p>This shows just how small the market truly is, and how much immense room there is <a href=\"https:\/\/cryptoslate.com\/coinbase-ceo-solving-these-four-problems-will-bring-billions-of-people-to-crypto\/\">for growth in the future<\/a>.<\/p>\n<p>If Bitcoin and other digital assets are able to capture even a fraction of the size of the traditional markets, they will see parabolic growth similar to that seen in years past.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s no secret that 2020 has been a rough year for the world, kicking off with raging fires in Australia and heightened political tensions within the Middle East, followed by the rise of a deadly virus that has put the world economy on the brink of a recession, also causing nascent markets like crypto to [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":128725,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,120],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Economic downturn erases trillions from stock market and shows just how tiny crypto truly is<\/title>\n<meta name=\"description\" content=\"The magnitude of the value that major companies have lost as a result of the economic decline is staggering, and shows just how tiny the crypto markets are\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economic downturn erases trillions from stock market and shows just how tiny crypto truly is\" \/>\n<meta property=\"og:description\" content=\"The magnitude of the value that major companies have lost as a result of the economic decline is staggering, and shows just how tiny the crypto markets are\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-24T07:00:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-24T05:36:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-small.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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